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S.B. 15






Sponsor: Beverly Ann Evans

             7      LONG TITLE
             8      General Description:
             9          This bill amends the Budgetary Procedures Act by lapsing an internal service fund
             10      agency's unused capital acquisition authority at the end of a fiscal year.
             11      Highlighted Provisions:
             12          This bill:
             13          .    lapses an internal service fund agency's unused capital acquisition authority at the
             14      end of a fiscal year;
             15          .    provides for nonlapsing capital acquisition authority if certain requirements are met;
             16      and
             17          .    requires an annual report and review of accumulated nonlapsing capital outlay
             18      authority.
             19      Monies Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          This bill takes effect on July 1, 2004.
             23      Utah Code Sections Affected:
             24      ENACTS:
             25          63-38-8.2, Utah Code Annotated 1953
             27      Be it enacted by the Legislature of the state of Utah:

             28          Section 1. Section 63-38-8.2 is enacted to read:
             29          63-38-8.2. Internal service funds -- End of fiscal year -- Unused authority for
             30      capital acquisition.
             31          (1) An internal service fund agency's authority to acquire capital assets under
             32      Subsection 63-38-3.5 (8)(a) shall lapse if the acquisition of the capital asset does not occur in
             33      the fiscal year in which the authorization is included in the appropriations act, unless the
             34      Legislature identifies the authority to acquire the capital asset as nonlapsing authority:
             35          (a) for a specific one-time project and a limited period of time in the Legislature's
             36      initial appropriation to the agency; or
             37          (b) in a supplemental appropriation in accordance with Subsection (2).
             38          (2) (a) An internal service fund agency's authority to acquire capital assets may be
             39      retained as nonlapsing authorization if the internal service fund agency includes a one-time
             40      project's list as part of the budget request that it submits to the governor and the Legislature at
             41      the annual general session of the Legislature immediately before the end of the fiscal year in
             42      which the agency may have unused capital acquisition authority.
             43          (b) The governor:
             44          (i) may approve some or all of the items from an agency's one-time project's list; and
             45          (ii) shall identify and prioritize any approved one-time projects in the budget that he
             46      submits to the Legislature.
             47          (c) The Legislature:
             48          (i) may approve some or all of the specific items from an agency's one-time project's
             49      list as an approved capital acquisition for an agency's appropriation balance;
             50          (ii) shall identify any authorized one-time projects in the appropriate line item
             51      appropriation; and
             52          (iii) may prioritize one-time projects in intent language.
             53          (3) An internal service fund agency shall submit a status report of outstanding
             54      nonlapsing authority to acquire capital assets and associated one-time projects to the
             55      Governor's Office of Planning and Budget and the Legislative Fiscal Analyst's Office with the
             56      proposed budget required by Section 63-38-2 .
             57          Section 2. Effective date.
             58          This bill takes effect on July 1, 2004.

Legislative Review Note
    as of 11-25-03 12:26 PM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

Mixed Membership Committee Note
    as of 12-10-03 1:27 PM

The Utah Technology Commission recommended this bill.
    Membership:        8 legislators    5 non-legislators
    Legislative Vote:    6 voting for    0 voting against    2 absent

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